Councils are set to receive an emergency bailout from the Government following recent warnings of further bankruptcies.
PA news agency understands a ministerial statement due to be made this afternoon will confirm upper tier councils will be handed an additional £500 million for children’s and adult social care in 2024/25.
Lower tier districts are also set to receive a funding boost of approximately £30-£40 million.
A senior council source said a change to local finance settlement at this late stage is unusual, but added the extra funding will stave of the immediate threat of many councils issuing section 114 notices, declaring effective bankruptcy.
The move comes after Rishi Sunak came under pressure from Tory MPs to boost the funding settlement for on-the-brink councils.
More than 40 Conservative backbenchers have signed a letter to the Prime Minister, which was organised by the County Councils Network, warning that without emergency cash, many councils will be forced to cut crucial frontline services and hike council tax in an election year.
District council leaders also held an emergency meeting in Westminster on Tuesday to urge the Government to rethink the settlement due to the rising costs of tacking homelessness.
However, councils believe the level of new funding will only prevent a financial crisis in the short term, PA news agency understands.
